Tenant screening is one of the most critical steps in rental property management, yet it’s simple to slip up and create expensive problems down the line. Whether it’s permitting personal biases to affect decisions or avoiding essential parts of the background check, ignoring key steps in the screening process can bring about significant issues, including late payments, property damage, high turnover, and even legal complications.
The great thing is that avoiding these mistakes can help you attract high-quality tenants and keep your properties running smoothly. This post will discover the common tenant screening mistakes and find practical tips to steer clear of them.
Mistake #1: Failing to Screen Consistently
Staying consistent is essential for effective tenant screening. Maintaining consistency involves applying the same standards to all candidates, rather than allowing emotions or personal biases influence your decisions. Neglecting to screen consistently and objectively can lead to various pitfalls, such as overlooking a fantastic tenant and facing possible legal action for discrimination.
Legal action can be a lengthy and costly process, something every rental property owner should strive to avoid. Several state and federal laws prohibit discrimination in housing, making it crucial to grasp how these laws pertain to your situation and to uphold a compliant screening procedure.
Mistake #2: Not Checking the Right References
A frequent mistake during screening is ignoring to verify the correct references. As part of the application process, it is important to gather personal and professional references from prospective tenants along with previous landlords. Employment history, financial references, and personal character references are all suitable types of references to request. Then, don’t forget to get in touch with all of these references and ask the right questions.
For instance, you might inquire about how long they’ve known the applicant, their work performance, how well they care for their current living space, and whether they’ve observed any concerning signs. Tailor your list of questions based on the specific type of reference you are dealing with.
Mistake #3: Overlooking Credit and Background Checks
A third big mistake in tenant screening is failing to run credit and background checks on the applicant. Both assessments are relatively standard in rental markets nationwide, but some property owners and managers still miss this opportunity to learn valuable information about their renters.
Credit and background checks reveal insights about an individual and can help you identify possible red flags, such as prior evictions, criminal history, or financial difficulties. Although not every unfavorable detail on a credit report or a background check guarantees that an application will be denied, these evaluations do give you what you need to make an informed decision about your next tenant.
Mistake #4: Ignoring Rental History
One of the biggest mistakes a rental property manager can make is neglecting to check a prospective applicant’s rental history. Rental history is crucial as it provides valuable insight into a renter’s likely future behavior.
When inspecting rental history, keep an eye out for possible warning signs, like delayed payments, property damage, and other lease agreement violations. Although it’s important not to rely solely on a previous landlord’s report of a person, specifically if there were disagreements during the rental period, it can provide a valuable perspective on the applicant’s potential behavior as a renter.
Mistake #5: Inadequate Communication with Applicants
In conclusion, one final mistake rental property owners and managers make during the screening process is neglecting to communicate clearly and consistently with the applicant. Seeking a rental home can be a stressful experience for renters, and it’s easy for frustration to build up and lead to negative feelings. Remember that your renter’s experience begins with the first interaction with you and will continue throughout your association, regardless of its duration.
To foster a positive relationship with your tenant, begin by clearly outlining your application criteria, timelines, and how your decision will be communicated. Due to this, you can avoid misunderstandings that might annoy or dishearten applicants and result in negative reviews.
Get Your Screening Process Right!
By implementing these tips and strategies, you can effectively avoid the top mistakes rental property owners and managers make during the screening process. This can ultimately result in improved tenant retention, reduced challenges, and even boost your reputation as a landlord.
Careful tenant screening can take a lot of time. Looking to hand this task over to experts and improve your tenant screening in Lake Wales? Reach out to Real Property Management Lakeside. We offer top-notch services featuring a streamlined screening process, ensured legal compliance, and additional benefits. Contact us online or call 863-877-1078 for expert property management services.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.
